March 16, 2009
Why Is Now The Best Time To Raise Pools Of Cash?
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In the history of the United States and quite possibly in the history of the world, a transfer of wealth may never occur as substantial as the one that's in front of us right now. At this particular moment, real estate (which is extremely depressed in many parts of the country) is being taken over by banks and lending institutions. These properties are being acquired by savvy investors who know how to take advantage of the distress in our system.
If there was ever a time that you wanted to be involved in the acquisition of real estate or real estate paper, now is the time to do that. The people who have cash are the ones who are going to acquire the pools of distressed assets and benefit from the equalization that will occur in the near future.
The old rule says that "cash is king" but the truth is that "pools of cash are really the end of the rainbow." The goal that you have to shoot for is to acquire pools of cash. There are several reasons why this is important. Here are 5 key points to consider:
1. Credit crunch. We are in a desperate credit crunch at this time. There is a lock on capital due largely to lack of confidence which is preventing cash from being dispersed into the market place. Consequently, enormous sums of money are sitting on the sidelines. A savvy promoter or syndicator will be able to show investors that the money parked on the sidelines would be better utilized in assets that are purchased for a low price which can certainly be resold at a higher price shortly in the future.
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achieve success build businesses business advisor capital get capital grow your business money business raise money search of capitalFiled under Business Financing, Business Growth, Financial News, Raising Capital, Real Estate by Joel Block
March 6, 2009
What's the Problem with Having a Sugar Daddy?
Every entrepreneur, whether a business owner, real estate syndicator, or other person who is trying to raise capital and make their project come to life, thinks that having a Sugar Daddy would make their dreams come true. I am defining a "Sugar Daddy" as an investor who just keeps funneling money into your project (i.e. real estate, independent film or any other business venture) because they think you're so terrific.
February 12, 2009
Where are the Loopholes in Corporate Liability Limitations?
My good friend and attorney colleague, Steven A. O'Rourke http://www.calcorplaw.com is a very sharp corporate and business lawyer. He is a guy that other attorneys go to when they want to debate the law. But he is also a guy that entrepreneurs and business owners should go to when they are concerned that they are thorough and accurate because Steve strives to be both. We often kick around concepts that affect the entrepreneurial community and below, I want to share another piece of work that Steve produced as a result of a recent conversation that we had.
Beginning of Contributor Comments:
You can reduce exposure to legal liability by learning the differences and interplay of the different legal regimes that apply to shareholders, directors and officers, respectively. When a prospective client asks me to create a corporation for which he would be (an) owner, an officer and (a) director, he usually states his purpose as wanting "personal immunity" As a matter of professionalism, I always assure the client knows the general law before I start preparing documents.
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business business advisorFiled under Business Financing, Business Growth, Financial News, Meet My Friend, Private Equity, Raising Capital by Joel Block
This article is the fourth in a series by my colleague and friend Eric Shaw of http://www.nycreditinc.com. Eric is one of the top credit analysts in the market. I regularly go to Eric to help me analyze client issues and for assistance in making a variety of business decisions. Not to mention, Eric is a rock star when it comes to networking. He has a lot to offer and I would like to bring it to my readers over the next several weeks. This article will be continued next week:
Beginning of Contributor Notes:
It is always tempting to sell to a customer who promises to pay promptly. Unfortunately, even so- called "good" customers delay payment and some default on trade credit. The unpredictable nature of today's business climate wreaks havoc on the finances of even the best-run businesses.
It is possible, however, for sellers to protect themselves from customer credit problems. It just requires a bit more work than was the case in earlier years.
More on How Can We Avoid the Traps in Managing Customer Credit? (Part 1 of 2 Parts)
business business advisorFiled under Business Financing, Business Growth, Financial News, Meet My Friend, Private Equity, Raising Capital by Joel Block
February 6, 2009
Would You Try to Sell a Blue Car to Someone Who Wants a Yellow Boat?
I was having lunch with a group of filmmakers this week — I make it a habit to meet with several filmmakers a month, partly to see what deals they're working on and partly to provide education and mentorship to these individuals who work hard to make their Hollywood dreams come true.
These weren't "wannabe" filmmakers. These were sophisticated people — people who had advanced degrees. One was a CPA who prepared the private placement memorandum for his production company so that they could produce their latest film. Another was a 20 year veteran of the studios who now wanted to work independently. But what everybody had in common was the extreme frustration that comes with raising capital.
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build businesses capitalFiled under Business Financing, Business Growth, Creating Buyers, Film Financing, Financial News, Raising Capital by Joel Block
February 5, 2009
Business Advice on LLCs and Securities Law - A Word to the Wise?
This is the second article in a series by my good friend and attorney colleague, Steven A. O'Rourke http://www.calcorplaw.com. He is a very sharp corporate and business lawyer and he is a guy that other attorneys go to when they want to debate the law. But he is also a guy that entrepreneurs and business owners should go to when they are concerned that they are thorough and accurate because Steve strives to be both. We often kick around concepts that affect the entrepreneurial community and below, I want to share another piece of work that Steve produced as a result of a recent conversation that we had.
Beginning of Contributor Comments:
Business people are often puzzled that securities laws might apply to their funding efforts. They often believe that, because they are not selling "stock" or advertising beyond word on mouth (or word of internet), or are selling only to 5 or 6 people, theirs is somehow under the radar of the "Wall Street" laws and regulations. This article alerts you that securities law is unclear, but expansive, in scope and effect, even to the "small business". A director, officer, "finder", promoter, or professional advisor to a company, might well be personally, even criminally, liable in ways he'd never imagined possible.
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business money businessFiled under Business Financing, Business Growth, Financial News, Meet My Friend, Private Equity, Raising Capital by Joel Block
This article is the third in a series by my colleague and friend Eric Shaw of http://www.nycreditinc.com. Eric is one of the top credit analysts in the market. I regularly go to Eric to help me analyze client issues and for assistance in making a variety of business decisions. Not to mention, Eric is a rock star when it comes to networking. He has a lot to offer and I would like to bring it to my readers over the next several weeks:
Beginning of Contributor Notes:
When you're not satisfied with the information standard credit data provides, several often overlooked tools can make you more comfortable about extending credit - without the hassle or UCC fillings.
Eric Shaw, president of New York Credit, Inc., explains how using these low-cost, under-utilized tools can help you determine a customer's creditability and guarantee payment.
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business business advisor money businessJanuary 27, 2009
What are the Red Flags that Point to Troubled Accounts Receivables?
This article is the second in a series by my colleague and friend Eric Shaw of http://www.nycreditinc.com Eric is one of the top credit analysts in the market. I regularly go to Eric to help me analyze client issues and for assistance in making a variety of business decisions. Not to mention, Eric is a rock star when it comes to networking. He has a lot to offer and I would like to bring it to my readers over the next several weeks:
Beginning of Contributor Notes:
The accounts receivable portfolio of a business is no different than a stock portfolio in the view of credit expert Eric Shaw. Both have specific values, and it's important to keep track of where the individual components are headed.
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money businessJanuary 21, 2009
Why Won't You Just Give Me the Money?
I spent a couple hours this week with a group of filmmakers, all of whom are looking for funds to finance their current projects. Several of them have been looking for capital for quite some time now, and it's beginning to take its toll. They're frustrated. They're weary. And, most of all, several of them are just plain angry.
They make their pitches with great enthusiasm. They have projects. They have talent. They have attachments. And they may even have some credits to their name. But, what they don't have is the capital to move their projects forward.
I commented to the room that if they really want to get capital, that they're speaking the wrong language. In order to get capital from a room full of financial people, they have to address the two primary questions that financial people have. Financial people want to know:
One of the best questions that people ask me came to me again this morning from someone who is connected to me on LinkedIn. This person is starting a business and is looking for financing, and in the course of looking under every rock, this woman noticed a source that most entrepreneurs eventually think is the perfect place to get their money.
How reasonable is it to get your vendors, suppliers, and service providers to be the financiers of your business? It's an obvious place to look for money because instead of paying them out, why not use the stock in your new business to pay for the services that they've rendered. It would be as if you raised a lot of money, paid them in cash, and then they gave you the money back that you have paid them to buy the shares with. Instead, you're just cutting out the cash part, swapping shares for the services that they rendered. Very smooth.
More on How Do You Get Suppliers To Provide Start Up Capital For Your Venture?
Filed under Business Financing, Raising Capital by Joel Block
